EU expects economic recovery to help lower unemployment faster
Print Edition
THE ongoing economic recovery across Europe should help unemployment fall faster than previously expected, according to a new European Union forecast released yesterday.
In its spring forecast, the European Commission, the EU’s executive, said the economic recovery is spreading across the 28-country bloc and that should help reduce the ranks of the 25.7 million unemployed.
Among the 18 EU countries sharing the euro currency, the commission expects unemployment to drop to 11.8 percent this year and 11.4 percent in 2015. Those predictions are lower than those it made in February, when the commission foresaw unemployment at 12 percent this year and 11.7 percent next.
“The recovery is gaining traction,” said Siim Kallas, the EU Commissioner in charge of economic affairs. “Importantly, the employment situation has started improving.”
However, the recovery isn’t expected to prompt upward price pressures in the eurozone. The commission cut its inflation forecast for the eurozone for this year from 1 percent to 0.8 percent, which is well below the European Central Bank’s target of close to but below 2 percent.
Inflation dropped dramatically over the past year or so because of high unemployment, government spending cuts and tight credit conditions, leading economists to warn about the risk of outright falling prices, or deflation, which could dent growth.
The ECB will hold its next rate-setting meeting on Thursday, but many analysts say the bank remains unlikely to further lower its benchmark interest rate or announce other counter-measures like large-scale asset purchases to boost inflation.
Low inflation was one of the threats to the economy noted by the commission. It also cautioned over tensions stemming from the escalating crisis in Ukraine, just east of its border.
The eurozone emerged from recession last year following a protracted financial crisis that saw several countries requiring a bailout to avoid bankruptcy. Unemployment across the eurozone reached an all-time high of 12 percent last year.
The commission continues to expect the economy of the eurozone, which has a population of about 330 million, to grow by 1.2 percent this year. In 2015, however, the commission slightly revised downward its forecast by 0.1 percentage point to 1.7 percent.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
